Dire

06.02.11

U.S. Debt Rating May Be Cut

American politicians got a stern warning from investors on Thursday, as ratings agency Moody’s Investors Service threatened to downgrade the nation’s debt rating if a deal on the debt ceiling isn’t reached “in coming weeks.” The U.S. currently has a sterling Aaa rating, but prices for its debt took a dip on Thursday after Moody’s announcement. Congress must boost the debt cap by August 2 or the Treasury will begin defaulting on its obligations. Just two months ago, Standard & Poor’s, another ratings firm, lowered its outlook on U.S. Treasury securities to "negative" from "stable."